United Airlines - the wholly owned subsidiary of
United Continental Holdings Inc.
) -announced that it is waiting for the Department of
Transportation's (DOT) nod to start non-stop flights from San
Francisco to Chengdu in China. United expects to launch the new
service on Jun 9, 2014.
Chicago based United plans to operate three non-stop flights
in a week between the route, with the Chengdu bound flight taking
approximately 14 hours 15 minutes, and the San Francisco bound
flight taking 13 hours 50 minutes. The non-stop flight will take
approximately 4 hour less than the standard time taken to fly
between the route via connecting service.
United plans to use
The Boeing Co.
) 787-8 Dreamliner for the new route, the first to be taken by a
carrier beyond Shanghai in China. If approved, the San
Francisco-Chengdu route will mark the ninth destination for
United in the Asia Pacific region, where the carrier offers
Additionally, United has a strategic alliance with Air China
Limited, which operates flights to 59 different destinations from
Chengdu. United passengers willing to move to other parts of
China will get the added benefit of connecting flights within Air
China's operating routes.
The Asia-Pacific region has become one of the most important
destinations for U.S. passenger carriers given the bullish
sentiment on the region based upbeat trade flows and business
activities. U.S. carriers continue to add non-stop flights to woo
corporate customers travelling from the U.S. to Asia and
Delta Airline Inc.
) announced that it will launch daily non-stop flights from
Seattle to Seoul and Hong Kong.
According to IATA (International Air Transport Association)
Asia Pacific will remain one of the most profitable destinations
in 2013, with the majority of flights coming from China, Japan
and some other long haul routes. Hence, we believe that adding a
non-stop service in this region will only expand United's network
Chengdu is the capital of Sichuan province with 14 million
habitats and is also the fourth largest city in Mainland. It is
also one of the most developing cities within China and currently
has 200 of the Fortune 500 companies.
United currently carries a Zacks Rank #3 (Hold). However,
U.S. Airways Group Inc.
) looks attractive with a Zacks Rank #1 (Strong Buy).
BOEING CO (BA): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis
US AIRWAYS GRP (LCC): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
To read this article on Zacks.com click here.